Jim Anderton MP Tue Sep 28 1999

The ridiculous over-reaction from Act and United to the Alliance's plan to give low income people $20 a week comes as no surprise because they don't care about anyone earning less than $60,000 a year, Alliance leader Jim Anderton said.

'Act and United think that the only people who matter earn more than $60,000 a year. They are against giving the 800,000 New Zealanders on superannuation and benefits any support,' Jim Anderton said.

'It is these low income New Zealanders who have borne the brunt of the last nine years of health charges and restructuring and have missed out on National's tax cuts.

'These tax changes will allow the Alliance to give these people $20 a week, free health and education and create 80,000 new jobs.

'Act claims people will leave the country. The top tax rate in Australia is 47 cents in the dollar at $75,000 and it's reducing to $60,000 in 2001, so they won't be going to Australia. Already thousands of our youngest and brightest people are leaving the country because of the student loans scheme. When education is free young people won't have to do that.

'In a tax paper hailed by Act yesterday the top 10% of income earners will pay 15% less of the total tax take than they do now under ACT policy, whereas the other 90% will pay a greater proportion. It is clear that Act wants to have huge tax breaks for the top 10% while the rest of the country will be relatively worse off.

'The Alliance believes those struggling on low and middle incomes are a higher priority.

'High income earners will also get all the benefits of a free education and health system

'Unfortunately for Act and National many people on high incomes are prepared to pay a bit more so that they can live in a healthy prosperous society rather than having to spend their tax cuts on high fences and burglar alarms,' Jim Anderton said.

ENDS

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